Yangtze Optical Electronic Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yangtze Optical Electronic Co., Ltd.

Why is Yangtze Optical Electronic Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.66%

The company has been able to generate a Return on Capital Employed (avg) of 4.66% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 9.90% and Operating profit at -28.25% over the last 5 years

Positive results in Sep 25

ROCE(HY) Highest at 4.44%
DEBTORS TURNOVER RATIO(HY) Highest at 1.02 times
NET SALES(Q) At CNY 77 MM has Grown at 65.5%

With ROE of 2.27%, it has a fair valuation with a 4.42 Price to Book Value

Over the past year, while the stock has generated a return of 101.77%, its profits have risen by 163.2%

Market Beating performance in long term as well as near term

Along with generating 101.77% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yangtze Optical Electronic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Yangtze Optical Electronic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yangtze Optical Electronic Co., Ltd.

81.91%

2.14

61.63%

China Shanghai Composite

17.07%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.90%

EBIT Growth (5y)

-28.25%

EBIT to Interest (avg)

19.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.23

Tax Ratio

3.91%

Dividend Payout Ratio

33.33%

Pledged Shares

Institutional Holding

ROCE (avg)

4.66%

ROE (avg)

2.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

195

Industry P/E

Price to Book Value

4.42

EV to EBIT

211.21

EV to EBITDA

102.64

EV to Capital Employed

5.43

EV to Sales

13.13

PEG Ratio

Dividend Yield

ROCE (Latest)

2.57%

ROE (Latest)

2.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

26What is working for the Company

ROCE(HY)

Highest at 4.44%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.02 times

NET SALES(Q)

At CNY 77 MM has Grown at 65.5%

RAW MATERIAL COST(Y)

Fallen by -43.3% (YoY

PRE-TAX PROFIT(Q)

At CNY 0.12 MM has Grown at 100.55%

NET PROFIT(Q)

At CNY 0.33 MM has Grown at 101.63%

-13What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -17.23 %

INTEREST(Q)

Highest at CNY 1.39 MM

Here's what is working for Yangtze Optical Electronic Co., Ltd.

Net Sales

At CNY 77 MM has Grown at 65.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 1.02 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

At CNY 0.12 MM has Grown at 100.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.33 MM has Grown at 101.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -43.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Yangtze Optical Electronic Co., Ltd.

Interest

At CNY 1.39 MM has Grown at 68.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -17.23 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at CNY 1.39 MM

in the last five periods and Increased by 68.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)